TV Azteca Intends to Make Upcoming Coupon Payment, Lucror Says

(Bloomberg) -- Mexican broadcaster TV Azteca intends to make an upcoming $16.5m coupon payment on bonds due in 2024 after posting stronger cash reserves in the second quarter, Lucror Analytics wrote in a note.

* Payment due on Aug. 9

* “We have turned less negative on TV Azteca considering the Q2/20 results, which included an encouraging sequential (primarily cost-driven) earnings improvement and a working capital boost to liquidity”

* Mexico’s tele-teaching initiative, which includes MXN450m to broadcasters for transmitting educational programming, “is unlikely to generate meaningful financial benefits, mainly as the amount would be shared with Televisa and regional broadcasters”

** Domestic advertising demand remains “muted, with no meaningful sequential pick-up observed in recent weeks”

* NOTE: 2024 bonds traded around 44.5 cents on the dollar Wednesday, yielding 35%, according to data compiled by Bloomberg

* “For the very near term, we view risks for the TZA ’24s as fairly symmetric in the mid 40s,” Lucror analysts, including Sebastian Hofmeister, wrote in the note

By Ezra Fieser